Commercial Law .Commercial Law This innovative textbook examines commercial law and the social and

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  • http://www.cambridge.org/9780521760645

  • Commercial Law

    This innovative textbook examines commercial law and the social and political context in which it develops. Topical examples, such as funding for terrorism, demonstrate this fast-moving fields relevance to todays concerns. This wide-ranging subject is set within a clear structure, with part and chapter introduc-tions setting out the students course of study. Recommendations for further reading at the end of every chapter point the reader to important sources for advanced study, and revision questions encourage understanding. The exten-sive coverage and detailed commentary has been extensively market tested to ensure that the contents are aligned with the needs of university courses in commercial law.

    Nicholas Ryder is an associate professor in law at the University of the West of England, Bristol. He is currently Director of the Commercial Law Research Unit and co-convener for the Banking and Finance Stream for the Society of Legal Scholars.

    Margaret Griffiths is Professor Emeritus at the University of Glamorgan. She is a specialist in consumer law, having taught and researched the area for over thirty years.

    Lachmi Singh is a senior lecturer in law at the University of the West of England Bristol, where she specialises in contract law, international trade and carriage of goods by sea.

    The authors discuss why Commercial Law: Principles and Policy is required reading at www.cambridge.org/commerciallaw

    Follow the authors on Twitter at @DrNicRyder; @LachmiSingh;@ProfMGriffiths

  • Commercial Law

    Principles and Policy

    NiCHoL aS RyDERMaRGaRET GRiFFiTHSL aCHMi SiNGH

  • CAMBRID GE UNIVERSIT Y PRESSCambridge, New york, Melbourne, Madrid, Cape Town, Singapore, So Paulo, Delhi, Mexico City

    Cambridge University PressThe Edinburgh Building, Cambridge CB2 8RU, UK

    Published in the United States of america by Cambridge University Press, New york

    www.cambridge.orginformation on this title: www.cambridge.org/9780521760645

    Nicholas Ryder, Margaret Griffiths and Lachmi Singh 2012

    This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press.

    First published 2012

    Printed in the United Kingdom at the University Press, Cambridge

    A catalogue record for this publication is available from the British Library

    Library of Congress Cataloguing in Publication dataRyder, Nicholas.

    Commercial law: principles and policy / Nicholas Ryder, Margaret Griffiths, Lachmi Singh. p. cm.includes bibliographical references and index.iSBN 978-0-521-76064-5 (hardback) iSBN 978-0-521-75802-4 (pbk.)1. Commercial law England. i. Griffiths, Margaret. ii. Singh, Lachmi. iii. Title. KD1629.R93 2012346.4207dc23 2012007319

    iSBN 978-0-521-76064-5 HardbackiSBN 978-0-521-75802-4 Paperback

    Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate.

  • Contents

    Preface page xiiiList of abbreviations xvTable of statutory provisions xviiTable of cases xlvii

    PaRt 1 aGeNCy 1introduction 1

    Part 1 Chapter 1 agency: an introduction 31 introduction 32 What is agency? 33 Nature and characteristics of agency 64 The different types of agency 85 Conclusion 136 Recommended reading 13

    Part 1 Chapter 2 the authority of an agent 141 introduction 142 The authority of an agent 143 agency by ratification 214 agency of necessity 255 Conclusion 266 Recommended reading 26

    Part 1 Chapter 3 Relations between a principal and agent 281 introduction 282 Duties of an agent 283 Rights of an agent 434 Commercial agents and principals 475 Disclosed agency 496 Undisclosed agency 527 Termination of agency 548 Recommended reading 58

  • Contentsvi

    PaRt 2 SaLe of GoodS aNd SeRviCeS 59introduction 59

    Part 2 Chapter 1 Sale of goods policy 61 1 introduction 61 2 Background 62 3 Development of the sale of goods 62 4 Equality of bargaining power: non-consumers and consumers 65 5 impact of the European Union 69 6 Contract of sale 71 7 Contracts for non-monetary consideration 72 8 Contracts for the transfer of property or possession 73 9 Recommended reading 77

    Part 2 Chapter 2 the implied conditions in sale of goods contracts 78 1 introduction 78 2 Background 79 3 Sale of Goods act 1979, section 12: the right to sell 80 4 Sale of Goods act 1979, section 13: compliance with description 85 5 Sale of Goods act 1979, section 14(2): satisfactory quality 91 6 Sale of Goods act 1979, section 14(3): fitness for purpose 102 7 Sale of Goods act 1979, section 15: sale by sample 105 8 Exclusion and limitation of liability 106 9 acceptance 10710 Remedies 11011 Recommended reading 112

    Part 2 Chapter 3 the passage of title, delivery and payment 114 1 introduction 114 2 Background to the passage of property and risk 115 3 Rules governing the passage of property 115 4 Passage of risk 125 5 The nemo dat exceptions 127 6 Delivery and payment 133 7 Remedies 136 8 Recommended reading 143

    Part 2 Chapter 4 the supply of goods and services 144 1 introduction 144 2 Background 145 3 Provision of Services Regulations 2009 146 4 Supply of Goods and Services act 1982 154 5 Recommended reading 164

  • Contentsvii

    Part 2 Chapter 5 e-commerce and distance selling 1651 introduction 1652 Background 1653 Electronic Commerce (EC Directive) Regulations 2002 1664 Distance selling 1735 Recommended Reading 180

    PaRt 3 iNteRNatioNaL tRade aNd SaLeS 181introduction 181

    Part 3 Chapter 1 Standard trade terms 1831 introduction 1832 CiF contracts 1833 FoB contracts 1924 Ex Works 1955 FaS contracts 1966 Conclusion 1967 Recommended reading 196

    Part 3 Chapter 2 the vienna Convention on the international Sale of Goods 1980 (CiSG) 197

    1 introduction and background 1972 Structure and scope 1983 UNiDRoiT Principles of international Commercial Contracts 2124 Conclusion 2135 Recommended reading 213

    Part 3 Chapter 3 Payment in international sales 2151 introduction and background 2152 open account 2153 Bills of exchange 2164 Documentary collections 2175 introduction to letters of credit 2176 Factoring 2267 Forfaiting 2288 Conclusion 2299 Recommended reading 229

    Part 3 Chapter 4 Carriage of goods by sea 2311 introduction 2312 Hague and Hague-Visby Rules 2343 Charterparties 2474 Time charterparty 256

  • Contentsviii

    5 Common law obligations of the shipper 259 6 Common law obligations of the carrier 263 7 Bills of lading 265 8 Electronic bills of lading 268 9 Conclusion 26810 Recommended reading 268

    PaRt 4 toRtiouS LiabiLity foR defeCtive PRoduCtS 271introduction 271

    Part 4 Chapter 1 Negligence and the rise of product liability 273 1 introduction 273 2 Background 274 3 Development of negligence 275 4 The move to strict liability 280 5 Types of defect 281 6 Developments in strict liability 284 7 Recommended reading 296

    Part 4 Chapter 2 Product Liability under the Consumer Protection act 1987 298

    1 introduction 298 2 Personnel 299 3 Meaning of product 305 4 Defectiveness 307 5 Defences 319 6 Contributory negligence 327 7 Recoverable damage 328 8 Limitations on liability 330 9 Recommended reading 332

    PaRt 5 uNfaiR CoMMeRCiaL PRaCtiCeS 333introduction 333

    Part 5 Chapter 1 Policy on unfair commercial practices 335 1 introduction 335 2 Background 336 3 Enforcement strategy 338 4 Criminal law controls 339 5 Civil law enforcement 344 6 Recommended reading 348

  • Contentsix

    Part 5 Chapter 2 the Consumer Protection from unfair trading Regulations 2008 350

    1 introduction 350 2 Scope of the 2008 Regulations 351 3 Prohibition against unfair commercial practices 357 4 Codes of practice 360 5 Misleading actions 362 6 Misleading omissions 372 7 aggressive commercial practices 375 8 Commercial practices which are automatically unfair 379 9 offences 39110 Recommended reading 392

    Part 5 Chapter 3 business protection from misleading marketing 393 1 introduction 393 2 Background 394 3 Controls over misleading advertising 394 4 Comparative advertising 399 5 Promotion of misleading and comparative advertising 402 6 Recommended reading 403

    PaRt 6 baNkiNG aNd fiNaNCe Law 405introduction 405

    Part 6 Chapter 1 Government policy 407 1 introduction 407 2 History of banking regulation: early policy initiatives 407 3 New Labour and a new policy 410 4 The Financial Services authority 422 5 The Coalition government 436 6 Conclusion 437 7 Recommended reading 438

    Part 6 Chapter 2 banking and finance law 439 1 introduction 439 2 What is a bank? 439 3 What is a customer? 442 4 Bank accounts 444 5 Cheques 449 6 Payment cards 451 7 Bankers duty of confidentiality 454 8 Banking Conduct Regime 457

  • Contentsx

    9 Payment Services Regulations 2009 45910 Conclusion 46011 Recommended reading 461

    Part 6 Chapter 3 banking regulation 462 1 introduction 462 2 European banking regulation 462 3 The Financial Services authority 466 4 Financial Services Compensation Scheme 473 5 Financial ombudsman Scheme 473 6 Financial Services and Markets Tribunal 473 7 The Bank of England 474 8 Bank insolvency 475 9 illicit finance 47710 Conclusion 49211 Recommended reading 493

    PaRt 7 CoNSuMeR CRedit 495introduction 495

    Part 7 Chapter 1 the governments policy towards consumer credit 497 1 introduction 497 2 Evolution of the consumer credit market 498 3 Consumer debt, financial exclusion and over-indebtedness 501 4 irresponsible lending 505 5